THE PRESIDENT: Thanks for coming. Welcome to the White House.
Thanks for coming. (Laughter.) Welcome to the White House.
(Laughter.)

We're taking an important step today to combat the problem of
identity theft, one of the fastest growing financial crimes in our
nation. Last year alone, nearly 10 million Americans had their
identities stolen by criminals who rob them and the nation's businesses
of nearly $50 billion through fraudulent transactions. The bill I'm
about to sign sends a clear message that a person who violates
another's financial privacy will be punished.

The Identity Theft Penalty Enhancement Act also prescribes prison
sentences for those who use identity theft to commit other crimes,
including terrorism. It reflects our government's resolve to answer
serious offenses with serious penalties.

I appreciate the members of my administration who worked on this
important piece of legislation, particularly Cabinet members John Snow
and John Ashcroft. I appreciate the members of the Congress who worked
hard on this legislation: Senator Orrin Hatch and Senator Jon Kyl,
Senator Dianne Feinstein, and members of the House, Chairman, Senator
Jim Sensenbrenner, and John Carter from the great state of Texas. I
want to thank the other members of Congress who are here, members of
both political parties. Thank you for coming. I thank those who are
on their staffs who have worked hard.

The crime of identity theft undermines the basic trust on which our
economy depends. When a person takes out an insurance policy, or makes
an online purchase, or opens a savings account, he or she must have
confidence that personal financial information will be protected and
treated with care. Identity theft harms not only its direct victims,
but also many businesses and customers whose confidence is shaken.
Like other forms of stealing, identity theft leaves the victim poor and
feeling terribly violated.

But the losses are not measured only in dollars. An identity theft
-- thief can steal the victim's financial reputation. Running up bills
on credit card accounts that the victim never knew existed, the
criminal can quickly damage a person's lifelong efforts to build and
maintain a good credit rating. Repairing the damage can take months or
years.

Government has a responsibility to protect citizens from these
crimes and the grief and hassle they cause. It's a solemn
responsibility of our government. I want to thank the members of
Congress for recognizing that responsibility.

This good law is part of a broader effort we've waged in recent
years. The U.S. Postal Inspection Service, the FBI, and Secret Service
are working with local and state officials to crack down on the
criminal networks that are responsible for much of the identity theft
that occurs in this nation. The Federal Trade Commission is training
local law enforcement in the detection of identity theft. The
Commission has set up the ID Theft Data Clearinghouse, which keeps
track of complaints across the country, and provides those records to
prosecutors seeking to take down organized rings.

Last December, I signed the Fair and Accurate Credit Transactions
Act, which established a national system of fraud detection so that
identity thieves can be stopped before they run up tens of thousands of
dollars in illegal purchases. Thanks to this law, victims can make one
phone call to alert all three major credit rating agencies to report
the crime and to protect their credit ratings.

The law I sign today will dramatically strengthen the fight against
identity theft and fraud. Prosecutors across the country report that
sentences for these crimes do not reflect the damage done to the
victim. Too often, those convicted have been sentenced to little or no
time in prison. This changes today. This new law establishes in the
federal criminal court the offense of aggravated identity theft. And
someone convicted of that crime can expect to go to jail for stealing a
person's good name. These punishments will come on top of any
punishment for crimes that proceed from identity theft. For example,
when someone is convicted of mail fraud in a case involving stolen
personal information, judges will now impose two sentences, one for
mail fraud, and one for aggravated identity theft. Those convicted of
aggravated identity theft must serve an additional mandatory two-year
prison term. Someone convicted of aggravated identity theft, such as
using a false passport in connection with a terrorism case, would
receive an additional prison sentence of five years. In addition,
judges will not be allowed to let those convicted of aggravated
identity theft serve their sentence on probation.

This law also raises the standard of conduct for people who have
access to personal records through their work at banks, government
agencies, insurance companies, and other storehouses of financial
data. The law directs the United States Sentencing Commission to make
sure those convicted of abusing and stealing from their customers serve
a sentence equal to their crimes.

What I'm telling you is this is a good law. And I appreciate you
working hard to see to it that it made it to my desk. Because of this
act of Congress I sign today, the guilty will be certain to be
punished. That's good for our consumers, it's good for our economy,
and it's good for the cause of justice.